Figures from trade body the Association of Short Term Lenders (ASTL) suggest the value of new bridging loans written rose by 92% compared to the same quarter last year.

Bridging loans are short-term loans which help people buy their next property before selling their existing home. Interest rates are relatively high compared to mortgages.

The value of total UK bridging loans grew by 50.4% this quarter compared to the same quarter last year, while the value of applications increased by 52% compared to the same quarter last year.

These figures are based on the performance of ASTL members.

Despite the figures, bridging applications fell by 15% between Q1 and Q2, coming off the 83% increase in Q4 last year.

Benson Hersch, chief executive of the ASTL said: “The dramatic rise in applications for bridging loans seen last quarter has not been repeated. Clearly, previous figures were skewed by one-off factors. This should not obscure the fact that the overall trend is strongly upwards, with our members writing £1.8bn worth of loans in the past year.”